Jan 10, 2006. /Lesprom Network/. After a detailed due diligence process Stora Enso has decided to withdraw from the previously announced project in consumer board production in China. A letter of intent to start a joint venture with Chinese Foshan Huaxin Packaging Co., Ltd. was signed in August 2005. The decision to withdraw was taken after the due diligence process revealed that the project would not meet the profitability expectations set by Stora Enso because technical modification of the machine would be more challenging than initially estimated. The total cost of due diligence and withdrawal from the project is not material for Stora Enso. The focus in China is now on developing the previously announced plantation project in Guangxi and publication paper feasibility study in Shandong. Stora Enso is exploring other possibilities of liquid packaging board production for the Chinese market. Stora Enso is an integrated paper, packaging and forest products company producing publication and fine papers, packaging boards and wood products, areas in which the group is a global market leader.